Freelance rate calculator
Are you charging enough to actually make money? Calculate your true hourly rate after taxes and overhead.
- 1.Set Target Income
- 2.Add Tax Rate
- 3.Estimate Billable Hours
- 4.Calculate Rate
- 5.Add Overhead
Key Takeaways
- →Freelance = 2-3x employee rate after taxes, health insurance, and non-billable time
- →You only bill 1,000-1,500 hours/year — not 2,080 — base your rate on that
- →Senior US freelancers: $80-150/hr. Below $50/hr is survival mode.
- →If clients always say yes, your rate is too low — target 20-30% declining on price
What is a freelance hourly rate?
Your freelance hourly rate is what you charge clients per hour of work. But the number on your invoice is not your take-home pay — taxes, overhead, and non-billable time eat into it.
Formula: Hourly Rate = (Target Income ÷ (1 - Tax Rate)) ÷ Billable Hours
Example: $100,000 target ÷ 0.70 (after 30% tax) ÷ 1,000 billable hours = $143/hour
Most freelancers undercharge because they calculate based on full-time employee rates. But employees don't pay self-employment tax, health insurance, or have non-billable admin time.
Freelance hourly rate benchmarks by skill (2025)
| Skill Category | Junior | Mid-Level | Senior | Expert |
|---|---|---|---|---|
| Writing/Copywriting | $25-50 | $50-100 | $100-200 | $200-500 |
| Graphic Design | $30-60 | $60-100 | $100-175 | $175-300 |
| Web Development | $50-80 | $80-150 | $150-250 | $250-400+ |
| UX/UI Design | $50-100 | $100-150 | $150-250 | $250-400 |
| Marketing/Strategy | $50-100 | $100-175 | $175-300 | $300-500+ |
| Video/Motion | $40-75 | $75-125 | $125-200 | $200-350 |
US-based rates. International rates vary 30-70% lower depending on market.
The overhead multiplier
| Cost Category | Typical % of Income |
|---|---|
| Self-employment tax | 15.3% |
| Income tax | 15-35% |
| Health insurance | 5-10% |
| Software/tools | 3-5% |
| Professional development | 2-5% |
| Retirement savings | 10-15% |
| Total Overhead | 50-85% |
Reality: To take home $75,000, you need to bill $120,000-150,000+ depending on tax bracket and benefits.
Billable vs. non-billable hours
| Activity | Billable? | % of Time |
|---|---|---|
| Client work | Yes | 50-70% |
| Admin/invoicing | No | 5-10% |
| Sales/proposals | No | 10-15% |
| Marketing | No | 5-10% |
| Professional development | No | 5-10% |
Key Insight: Even full-time freelancers only bill 1,000-1,500 hours/year (vs. 2,080 "work" hours). Base your rate on billable hours, not total hours.
Why your freelance rate is too low (top 5 reasons)
1. calculating like an employee
$50/hour as a freelancer ≠ $104K salary. After taxes and overhead, it's closer to $60-70K take-home.
2. ignoring non-billable time
You spend 30-50% of your time on unpaid work. If you bill 20 hours, you worked 30-40.
3. competing on price
Racing to the bottom attracts bad clients. Better clients pay more because they value results.
4. not raising rates
If clients always say yes, your rate is too low. Target 20-30% of prospects saying no on price.
5. charging by hour instead of value
Hourly caps your income. Project-based or value-based pricing unlocks higher earnings.
Hourly vs. project vs. retainer pricing
| Model | Best For | Pros | Cons |
|---|---|---|---|
| Hourly | Uncertain scope | Low risk, easy to start | Income capped by time |
| Project | Defined deliverables | Predictable, can earn more | Scope creep risk |
| Retainer | Ongoing relationships | Stable income | Can feel like employment |
How to raise your freelance rate
| Strategy | Impact | Difficulty |
|---|---|---|
| Raise rates for new clients | Immediate | Easy |
| Grandfather existing clients | Maintain relationships | Easy |
| Specialize in a niche | +30-100% rate | Medium |
| Build a portfolio of results | Justify premium | Medium |
| Switch to value-based pricing | Unlimited upside | Hard |
Frequently Asked Questions
FAQ
What is a "good" freelance hourly rate?
$80-150/hour for experienced US-based freelancers. Senior specialists hit $150-300+. Below $50/hour is survival mode.
How do i calculate my minimum rate?
(Target income ÷ (1 - tax rate) + overhead) ÷ billable hours. Most freelancers need to charge 2-3x what they think.
Should i charge different rates for different clients?
Yes. Enterprise clients pay more than startups. Complex projects warrant higher rates than simple ones.
How often should i raise my rates?
Annually at minimum. Every 6 months for in-demand skills. Always raise for new clients before existing ones.
Is hourly or project pricing better?
Project pricing is usually better — it rewards efficiency. But hourly is safer when scope is unclear.
What if clients say my rate is too high?
Good. If everyone says yes, you're too cheap. Target 20-30% of qualified prospects declining on price.
How do freelance rates compare to employee salaries?
A $100/hour freelance rate ≈ $80-100K employee salary after accounting for taxes, benefits, and overhead.
Should i publish my rates on my website?
Optional. Publishing filters out low-budget clients but can anchor negotiations. Test both approaches.